NEW BILL--GIVES HOMEOWNERS TOOLS TO AVOID FORECLOSURE!

Lifeline for sinking Homeowners

 

Governor Arnold Schwarzenegger has signed Senate Bill 1137, which was passed by California legislators in late June. The bill seeks to provide new pro­cedures for lenders seeking foreclosure actions and was endorsed by consumer groups.

 

The new law was passed as an “urgency measure,” so most of the provi­sion are effective immediately and continue until January 1, 2013. The legislation has three main sections, which affect borrowers who took mortgage loans from January 1, 2003 through December 31, 2007:

 

· The new law requires a mortgagee, trustee, beneficiary or authorized agent to assess the borrower’s finan­cial situation and explore options for the borrower to avoid foreclosure. The lender must advise the borrower that he or she has the right to request a subsequent meeting within 14 days. A Notice of Default may not be filed until the lender has contacted the borrower or satisfied due diligence requirements to do so, and the NOD must include a specified declaration from the lender detailing either its contact with the borrower or that the borrower has surrendered the prop­erty. The law authorizes borrowers to designate a HUD-certified counseling agency, attorney or other advisor to meet with the mortgagee, beneficiary or authorized agent on the borrower’s be­half.

 

· Fines of up to $1,000 per day may be levied upon owners of foreclosed prop­erties who fail to properly maintain them. A governmental entity seeking to impose fines and penalties must give notice of the claimed violation and an opportunity to correct the violation at least 14 days prior to imposing penal­ties. The law also allows a hearing for those contesting any governmental im­position of fines and penalties.

 

· The law amends current regulations to provide that a 60-day notice to be given to tenants of buildings facing foreclo­sure before the tenant can be removed from a rental housing unit (existing law provided a 30-day notice). A 60-day im­plementation period is in effect on this provision. 

 

“Foreclosures are afflicting thousands of Californians and their communities,” Perata said. “SB 1137 gives homeowners more advanced warning a foreclosure may be coming and provides the tools they need to help avoid it.”.

 

Source: www.sen.ca.gov

 

 

 

Hi everyone, here are updated sales data for Alameda and Contra Costa:

Signs of Life in Real Estate

Very interesting article…Enjoy!

Signs of Life in Real Estate

The “free fall” phase of the California housing market bust could end soon, as bargain hunters begin buying homes in parts of the state hardest hit by foreclo­sures, according to a recent economic re­port. The quarterly UCLA Anderson Forecast said foreclosure rates will remain a signifi­cant problem in the state at least through the end of 2008 and into 2009, economist Ryan Ratcliff wrote in one of the sections of the overall economic forecast. But “we may be transitioning from the free fall” of wide­spread foreclosures that drive down home values and prompt more foreclosures. Ratcliff said the fact that home sales in some Bay Area and Southern California counties have increased from year-ago lev­els just recently is “an encouraging first sign of a market starting to find its new equilibrium.”

In the Bay Area, “you see it in Contra Costa and Solano counties. Those are the places where you’ve seen year-over-year increases in sales,” he said in a recent in­terview.Steep price declines in those areas plagued by the most foreclosures, fairly low mortgage interest rates and improving mortgage-market conditions are luring buy­ers back to the market, according toRatcliff. But in his report, titled ”The Three Phases of California’s Real Estate Bust,” he also warned that a glut of foreclosed, bank-owned properties in many areas means that “a ‘normal’ housing market is still a long way off.”

The first phase of the bust occurred when home sales began to fall in 2005 and new home builders began to cut prices and offer incentives, Ratcliff said. The second phase happened with the flood of foreclosures in 2007.. The third phase will take place when “prices are still weak but sales volumes start picking up.” Ratcliff said he thinks of today’s market as Phase 2.5, calling it a bit too early to cele­brate a recovery. Foreclosures caused by re­setting adjustable-rate mortgages may have peaked, he said, so foreclosure rates may begin to decline later this year or early in 2009.

The quarterly California economic forecast predicts the state will continue to add jobs in 2008, but just barely. Economist Jerry Nickelsburg of the Anderson Forecast said total state employment will probably increase by just 0.2 percent this year, with growth in the services sector making up for continued job losses in residential construction and fi­nancial services. The mortgage finance indus­try in particular, which is centered in Califor­nia, will suffer a permanent loss of jobs,” he wrote.

Must as its March report indicated, the forecast predicted a continued weak econ­omy. Housing market weaknesses will be tempered by strength in exports and in agri­culture. Statewide unemployment is predicted to reach 6.1 percent by the end of the year, up from 6.0 percent in the first quarter. For more information visit http://uclaforecast.com

San Jose Mercury News

Sue McAllister

June 18, 2008

May 2008 Data Quick Housing Statistics

California May 2008 Home Sales

June 18, 2008

A total of 33,024 new and resale houses and condos were sold statewide last month. That was up 6.0 percent from 31,150 in April and down 10.7 percent from 36,975 for May last year. Last month's total made for the slowest May since 1995 when 32,223 homes sold.

Of the homes sold in May, 38.3 percent were foreclosure resales, up from a revised 37.6 percent in April and 5.4 percent in May a year ago.

The median price paid for a home last month was $339,000, down 4.2 percent from $354,000 for the month before, and down 30.0 percent from $484,000 for May a year ago when the median was at its peak. Around half the drop in median is due to depreciation, the other half due to shifts in the types of homes selling, and how those homes are financed.

The typical mortgage payment that home buyers committed themselves to paying last month was $1,569. That was down from a revised $1,645 in April, and down from $2,266 for May a year ago. Adjusted for inflation, mortgage payments are back to where they were in mid 2003. They are 23.3 percent below the spring 1989 peak of the prior real estate cycle. They are 38.0 percent below the current cycle's peak in June 2006.

DataQuick, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates, monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts. The numbers cover all sales, new and resale, houses and condos.

Indicators of market distress continue to move in different directions. Foreclosure activity is at record levels, financing with adjustable-rate mortgages is at a six-year low. Down payment sizes and flipping rates are stable, non-owner occupied buying activity is increasing, DataQuick reported.

 

 

______________________________________________________

Alyssa Duggan

Real Estate Broker

 

The Duggan Group Corporation

The Duggan Team

Convenience. Experience. Results.

 

231 Marketplace ste. 344
San Ramon CA 94583

 

650.678.5050 cell

925.806.9126 office

925.406.0925 e-fax

www.DugganTeam.com

 

Feds Hold Rates Steady

The Federal Open Market Committee (FOMC) met yesterday and today and decided to leave rates unchanged, ending its nine-month course for dropping the Fed Funds Rate.  Rising inflation concerns and hints of a rebounding economy led the Fed to keep its target fed funds rate at 2%.  This will keep the prime rate at 5%, which is the rate that directly affects interest rates on equity lines and credit cards.

 

This news has moved mortgage backed securities lower as the market reacts to the Fed's position.  We have received an alert to lock as the market's reaction could potentially move mortgage interest rates higher.

 

Below is a link to read the Fed Statement through CNN Money if you are interested. 

 

http://money.cnn.com/2008/06/25/news/economy/fed_statement/index.htm?postversion=2008062514

 

Please feel free to call us if any questions or if we can help you in any way.

 

______________________________________________________

Alyssa Duggan

Real Estate Broker

 

The Duggan Group Corporation

The Duggan Team

Convenience. Experience. Results.

 

231 Marketplace ste. 344
San Ramon CA 94583

 

650.678.5050 cell

925.806.9126 office

925.406.0925 e-fax

www.DugganTeam.com

 

FHA loans are the WAY to go!

Our business in booming right now due to the NEW FHA loan programs. Tons of first time home buyers and buyers with little money to put down are jumping into the market and taking advantage of the extremely low home prices. The NEW FHA loan program requires a 3% down payment on most transactions. In some situations, the down payment is greater than 3% (up to about 10%). The loan allows the seller to pay up to 3% of the closing costs and up to 3% of the down payment. If the seller agrees to these terms that means that the buyer only needs to bring a small amount of money to the table for the deposit and the closing costs. It depends on the purchase price of the home. Here is an example on the purchase of a $219,000 home. Remember that each person’s situation is different. These numbers are only estimates and require bank approval but this will give you a rough idea of the costs…its much more doable than you think!

 

Offer Price: $219,000

Terms: Seller to credit 3% down payment and 3% of the closing costs

30 day escrow period

 

Need from Buyer

Earnest Money Deposit due at the time of offer: $4,000

Closing costs due at the time of closing: $3,400

Monthly Payment: $1,710 (includes taxes, insurance, interest and principle)

 

Wow! $7,400 gets this person into a home. This is why more 1^st time home buyers are now able to purchase. There is a “silver lining” in this Real Estate downturn and we are now seeing it! If you would like to look at homes or get pre-approved for an FHA loan, CALL ME TODAY!

 

______________________________________________________

Alyssa Duggan

Real Estate Broker

 

The Duggan Group Corporation

The Duggan Team

Convenience. Experience. Results.

 

231 Marketplace ste. 344
San Ramon CA 94583

 

650.678.5050 cell

925.806.9126 office

925.406.0925 e-fax

www.DugganTeam.com

 

April Real Estate Statistics by County

Here are April Real Estate sales statistic by County. If you have any questions or are interested in getting pre-approved, please call me. Many of our clients are purchasing right now with the FHA loan programs. Some programs are allowing the seller to pay 3% of the closing costs and 3% of the down payment. This allows buyers to purchase with less money. To see if you qualify, simply call or email.

 

	Sales Volume			Median Price
All homes	Apr-07	Apr-08	%Chng	Apr-07	Apr-08	%Chng
Alameda	1,555	1,240	-20.3%	$586,500	$473,750	-19.20%
Contra Costa	1,246	1,265	1.5%	$600,000	$395,000	-34.20%
Marin	313	216	-31.0%	$925,000	$800,000	-13.50%
Napa	109	100	-8.3%	$563,000	$499,000	-11.40%
Santa Clara	2,009	1,440	-28.3%	$709,000	$615,000	-13.30%
San Francisco	568	605	6.5%	$790,000	$750,000	-5.1%
San Mateo	681	573	-15.9%	$810,000	$672,500	-17.00%
Solano	440	429	-2.5%	$428,000	$319,500	-25.40%
Sonoma	526	442	-16.0%	$519,000	$414,250	-20.20%
Bay Area	7,447	6,310	-15.3%	$659,000	$518,000	-21.40%

Source: DataQuick Information Systems

______________________________________________________

Alyssa Duggan

Real Estate Broker

 

The Duggan Group Corporation

The Duggan Team

Convenience. Experience. Results.

 

231 Marketplace ste. 344
San Ramon CA 94583

 

650.678.5050 cell

925.806.9126 office

925.406.0925 e-fax

www.DugganTeam.com